Bansal Wire Targets 20% Annual Growth: Is Its Shift Toward Value Added Wires Enough?
The steel wire industry is moving beyond basic volume growth as customers increasingly look for specialised products across automotive, infrastructure, construction and industrial applications. Against this backdrop, the company is expanding capacity while gradually shifting its mix towards speciality wires, B2C products and newer applications. The focus now is on maintaining growth while improving utilization, margins and returns on the capital already invested.
Bansal Wire Industries was recently trading around ₹328 per share , with a market capitalization of roughly ₹5,141 crore and a P/E of around 35.6x . The stock's 52-week range was approximately ₹222–₹372 .
1. The Core Business Is Already Operating at Meaningful Scale
Bansal Wire Industries operates across a wide range of steel-wire products used in sectors such as automotive, infrastructure, power and cables, consumer durables and construction. The company ended FY26 with 4.58 lakh tonnes of annual volume , its highest-ever level, while consolidated revenue increased 19% to ₹4,160 crore . EBITDA rose 17% to ₹324 crore , and PAT increased 10% to ₹161 crore .
Also read: TCI board approves ₹150 Crore buyback at ₹960 per share; sets record date as Oct 9
At this scale, maintaining 20% annual growth cannot depend only on selling more of the same products. That is why Bansal Wire is increasingly focusing on newer categories, better utilisation of its expanded capacity and higher-value products.
2. Speciality Wires Are Small in Volume but More Important for Earnings
Speciality wires currently account for only around 4–5% of total volumes , but management expects them to become increasingly important because they generate higher contribution than many conventional wire products.
The company has already expanded its IHT Wires capacity from 9,000 tonnes to 15,000 tonnes and has started commercial production of brass-coated hose wire . Its steel tyre cord programme has also moved forward, with technical approvals from two major global tyre companies and the first trial order already completed.
The importance of these businesses is therefore not just the additional tonnes they may contribute. Management sees speciality wires as a potential driver of margin expansion and earnings growth as their contribution increases.
3. The 6.8 Lakh-Tonne Capacity Creates Room for Growth
The expanded Dadri facility added 1.2 lakh tonnes of capacity , taking the company's total installed capacity to approximately 6.8 lakh tonnes per annum . FY26 utilisation was around 70% , leaving significant room to increase production from the existing asset base.
Management said the historical utilisation range for the company has been around 85–90% , and the objective is to move towards those levels as the Dadri facility ramps up. At the same time, Bansal Wire wants to retain 20–25% excess capacity headroom at the start of each year so that it can continue growing without immediately running into capacity constraints. This balance between utilisation and spare capacity is central to the company's expansion strategy.
4. B2C Is Becoming a New Revenue Engine
Another important change is the company's expansion into farming, poultry and fencing wires . These products allow Bansal Wire to enter more directly into the B2C market while using its existing manufacturing capabilities and established brand. Management said the company initially developed this business in Gujarat and is now applying that experience across South India, Maharashtra, Tamil Nadu, Andhra Pradesh and Telangana .
B2C already contributes around 10% of revenue , making it much more than a pilot initiative. Management sees this segment as an important part of maintaining its long-term growth objective of around 20% annually.
5. Steel Tyre Cord Could Add a Higher-Value Product Category
Steel tyre cord is another business that could change the product mix over time. The product is highly technical and qualification-driven, and management said approvals typically take 2–2.5 years .Bansal Wire has already made progress faster than a typical qualification cycle because of its customer relationships and the fact that it is currently the only Indian company manufacturing the product.
It has completed its first trial order and expects additional trial orders from other customers. If the approvals progress as planned, management expects meaningful sales within the next three to four quarters .
The opportunity is particularly relevant because a significant part of India's steel tyre cord requirement is still imported.
6. New Products Are Expanding the Addressable Market
The company's portfolio now contains around 3,000 SKUs , covering high-carbon wires, stainless steel wires, low-carbon wires, speciality wires and newer products such as LRPC strands . The LRPC business has already entered commercial production and is linked to India's infrastructure expansion.
This wider product portfolio reduces dependence on a single end market. Bansal Wire also exports to nearly 40 countries , giving it additional geographic diversification.
Also read: Vishal Nirmiti IPO: From Issue Details to Financials; Here’s What You Need to Know
The company's strategy is therefore gradually shifting from a volume-led steel wire manufacturer to a more diversified supplier with multiple applications and customer segments.
7. Management Wants Growth to Come With Better Margins
Bansal Wire is not targeting revenue growth alone. Management has set a medium-term objective of moving towards double-digit EBITDA margins , supported by better product mix, higher utilisation and operating efficiency. It also expects these changes to improve ROCE over time.
The FY26 EBITDA margin was around 7% , so reaching double-digit margins would represent a meaningful improvement. The speciality-wire portfolio is expected to play an important role because management believes these products can generate higher contribution.
8. Strong Cash Generation Is Supporting Expansion
One of the more important changes in the financial profile is cash generation. Bansal Wire generated around ₹330 crore of operating cash flow in FY26 , compared with its internal target of ₹250 crore. Management said inventory optimisation, lower outstanding days and better operating discipline were major contributors.
The company has now increased its earlier two-year cash-flow target of ₹600 crore to ₹800 crore , with around ₹400 crore targeted for the current year. It also plans to invest around ₹200–250 crore annually , primarily through internal accruals. That is important because management believes it can maintain around 20% growth without taking on significant additional debt in the near term.
Future Perspective
The key change at Bansal Wire is not simply the addition of capacity. It is the effort to make that capacity more productive while gradually increasing the contribution from higher-value products.
The company is targeting around 20% annual growth , but achieving that will require continued progress in speciality wires, B2C, steel tyre cord, LRPC and exports. At the same time, management wants capacity utilisation to move higher, EBITDA margins to reach double digits and ROCE to improve.
The next few years will therefore show whether Bansal Wire can turn its 6.8 lakh-tonne capacity and growing speciality portfolio into sustainable revenue and profit growth , rather than relying mainly on higher volumes.